You are currently browsing the monthly archive for May 2009.

From acquiring, to investing, to repairing, to staging, to appraising, to inspecting, to putting it on the market, to open houses, to listing, to contracts, to actually selling… the process of investing in and selling a home from start to finish can be confusing and a daunting task. We want to make it easy! We are working with a new home that a private lender has invested his money in to yield a great percentage. We are the experts in the field of home acquisition and investments. This particular home has just been acquired and is in the process of getting repairs and getting ready to go on the market… SO we have decided to do a series of blog entries following this home and it’s investors from the beginning to the day it sells.

Welcome to WEEK THREE of our entries: the process of investing in real estate from START to FINISH.

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A red door ALWAYS helps a home sell

A red door ALWAYS helps a home sell

We had another VERY productive week with a lot of people working on this house.  We have owned it two weeks now and are very happy with the overall progress! Even though I discussed a lot of the improvements in last week’s post, I’m going to include them in this one, in addition to what we worked on this week, so that someone new coming across this can feel caught up on everything we have done! 🙂

Well, the biggest constraint with the house was that it only had 1.5 baths, and to make matters worse, they both were ONLY accessible from bedrooms.  Every house has a problem to solve, and the bathroom situation was a major problem for this house.  So, we added a full bath downstairs, located just off the kitchen.  We also added a new laundry room, and we opened up the kitchen and gave it a new dining area as well.

So here’s where we are right now:

  • New bathroom downstairs is almost done 
  • All electrical work is done  [we rewired a portion of the house]
  • Plumbing – all updated now
  • 2.5 Ton heat pump installed (new heating and air conditioning )
  • New dishwasher installing in the kitchen
  • New flooring put in kitchen, bathrooms, and laundry room
  • All interior walls painted
  • New black shutters on exterior of house AND we painted the front door red since red always sells the house
  • New deck is complete
  • New dimensional roof complete

New windows will be installed on Tuesday and then we will be 100% complete! How awesome is that?!

Other good news, the house has been appraised at $130,000 this week and we will fine tune our marketing strategy on justlistem.com very soon.  We, including our private lender, are very happy that it appraised at $130k with the 3 bedrooms and 2.5 baths. 

I hope you enjoy the pictures I have included. Check back next week where we outline our marketing strategy using justlistem.com, and where we discuss all the finishing touches on the house!

Exterior work on home
Exterior work on home
Electrical work
Electrical work
New flooring
New flooring
Flooring
Flooring

 

 

 

 

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From acquiring, to investing, to repairing, to staging, to appraising, to inspecting, to putting it on the market, to open houses, to listing, to contracts, to actually selling… the process of investing in and selling a home from start to finish can be confusing and a daunting task. We want to make it easy! We are working with a new home that a private lender has invested his money in to yield a great percentage. We are the experts in the field of home acquisition and investments. This particular home has just been acquired and is in the process of getting repairs and getting ready to go on the market… SO we have decided to do a series of blog entries following this home and it’s investors from the beginning to the day it sells.

Welcome to WEEK TWO of our entries: the process of investing in real estate from START to FINISH.

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The Bolling house -- Week TWO.

Our project -- Week TWO.

Of course, there are no surprises this week!  Renovating a house is just like peeling an onion–you never know for sure what you have until you peel it all back.  We had TEN people working on this house for the better part of this week.  It is critical to be prepared to start the work the very first day that you close on the home. Our first trip to Lowe’s home improvement center was fun. It was like a parade with about four carts full of materials.  [BTW: ANYONE can save 10% at Lowe’s by getting the coupon from the “change of address packet” at their local post office.  This week we spent $1,400 in materials at Lowe’s and saved $140. Pretty sweet, right?]

Here is what we did this week:

Constructing the new full bathroom

Construction of the new full bathroom

  • New dimensional shingle roof
  • New deck in the back yard
  • New full bath (almost done)
  • New heating and air conditioning installed (WITH a 2.5 ton heat pump)
  • Prepped all walls for painting

Here’s what’s happening NEXT week:

  • Completing all interior work
  • Refinish all hardwood floors
  • Lay new kitchen floor
  • Lay new bathroom flooring
  • Replacing shutters
  • Painting of exterior trim
  • Complete all landscaping work
  • Determine sale and listing price
  • List home using Just List ‘Em: http://www.justlistem.com

Our investor is very pleased with the progress of the renovations on the property. By using his IRA to fund the project, he is receiving an 8% interest return on his overall investment–something he would never have received from a bank. We are so happy to be collaborating with a private lender on such a great project. By becoming a private lender and investing in real estate when the stock market is not at it’s best, you are able to achieve greater financial gain in an easy and reliable manner. After last week’s post, we received A LOT of questions regarding this process. We would be happy to answer them, but I would also like to refer you to this website:http://www.entrusttexas.com. [The contact is Quincy Long.] The Entrust Group provides a lot of GREAT information regarding self-directed retirement plans–this is a great place to start when considering investing in real estate and properties.

Look forward to next week when we discuss the completion of the renovations, sale-price, and MORE.

In the meantime, follow us on Twitter! @justlistem

-Jim Ingersoll

From acquiring, to investing, to repairing, to staging, to appraising, to inspecting, to putting it on the market, to open houses, to listing, to contracts, to actually selling… the process of investing in and selling a home from start to finish can be confusing and a daunting task. We want to make it easy! We are working with a new home that a private lender has invested his money in to yield a great percentage. We are the experts in the field of home acquisition and investments. This particular home has just been acquired and is in the process of getting repairs and getting ready to go on the market… SO we have decided to do a series of blog entries following this home and it’s investors from the beginning to the day it sells. 

Here is our first entry. ENJOY! 

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Henrico County Home - Stage ONE

Henrico County Home - Stage ONE/Before

Here is some background on this adorable little home in Henrico County: This home is a 3 bedroom/1.5 bath located in Henrico County, Virginia. The last recorded sale on this home was in 1994 and it was sold for $53,000. One year ago it was put up for sale and listed on the MLS (Multiple Listing Service) for $109,900 and did not sell. A few months later this adorable home was foreclosed on and introduced, once again, to the market at $95,900.

What we are doing: My companies, Cheap Richmond Houses & Just List ‘Em negotiated with the bank to purchase the house for $66,100 and to close in 45 days. As time went on, we continued to watch a leaky roof do significant damage, in addition to other problems around he house. Therefore, we worked with the bank to renegotiate our contract to include a credit of $5,850 for roof repair bringing the total price of the home down to $60, 250. We did this knowing that we can put around $22,000 in repairs into the home and deliver it to the market completely renovated in about 15 days. 

What is the next step?: Our next step was to determine the financing on the acquisition of the negotiated price of $60,250 to also include the $22,000 in repairs. We have decided to use a private lender’s IRA (Individual Retirement Account). Using real estate as an investment for your IRA is a GREAT way to succeed financially. This private lender was truly sick and tired of losing money in the stock market, therefore he loaned 100% of the cost of acquisition and repairs at an interest rate of 8%. For us, we were able to receive very easy funding, including no bank fees, and no mortgage payments since his interest in accruing until we pay him off. For the investor, he is very happy to finally enjoy a yield on his money. He has not earned anything close to 8% in a very long time, making the decision to loan us the money very easy for him.

The key to all of this is to create and foster a win-win scenario for both the private lender, borrower, and/or investor. We customize the lending solution directly with the private lender to be sure he receives an acceptable return on his investment.  His funding is then secured with a first position deed of trust and promissory note on this house.  We have been able to create a very easy transaction to satisfy the both of our needs on this property.

We are so excited and honored to be working with this particular investor and we are so eager to work on this home and get it ready for sale. 

Please contact us if you would like to work with us as a financial partner and put your money to work at a great yield. We ARE the experts in real estate investing. Let us know what you need and we will be HAPPY to help! Contact me at: Jim [at] Cheaprichmondhouses [dot] com or call me direct at 804-270-7377.

Our next entry on this home will highlight the renovations we are doing! Check back. 

-Jim Ingersoll

No, you’re not a dummy. I would never say that. But, I DO have to say, this whole “First-Time-Homebuyer-Tax-Credit” thing can be a bit confusing if you aren’t good with numbers, or taxes, or legislation. So, I’ve decided to break it down for you, so that maybe the whole thing will be a bit easier to swallow and/or comprehend. Here are some basic questions about the tax credit, ANSWERED, in a hopefully, clear and concise manner. 

  1. Who is eligible to receive this “tax credit” anyway? The tax credit can go to ANY person who is purchasing/buying a home for the FIRST TIME (in a three-year period) prior to December 1st, 2009. 
  2. What do you mean “three-year period”? Well, say you owned a home, a long time ago. But you have NOT owned a home in the last three years. Well, you’re eligible! But sorry married folks, if you or your spouse has owned a home, you don’t qualify. Only those who have NOT owned a home individually or jointly may qualify to receive the tax credit. 
  3. Wait, so how is the amount of the tax credit determined? Meaning, how much money will you get? The tax credit is equal to 10% of the purchase price/selling price of the home — up to a maximum of $8,000. So, if you purchase your house for $100,000, 10% of that would be $10,000. But that’s too much, so you would get the maximum credit of $8,000. Get it?
  4. How is this NEW first-time-home-buyer tax credit different from the one that Congress passed and enacted in July of 2008? The biggest difference is that THIS NEW tax-credit DOES NOT have to be repaid. I repeat. DOES NOT have to be repaid! Basically, the previous tax credit was like a loan that didn’t have any interest associated with it, basically making it not really an actual tax credit. However, the homebuyer MUST stay in the home for 3 years or else you may have to pay some of it back.
  5. Can you combine this tax credit in conjunction with any other first-time-home-buyer tax credits? Nope, sorry Greedy Gus, you can only choose one. 
  6. How do you make sure you are going to receive this tax credit? Well, you are going to file for this tax credit on your 2009 federal tax return and it will show up then. If you have any doubts, ask an accountant or CPA. I know that I, myself, am not always the best at filling out forms, so it’s always smart to have someone double check your work. Oh, and if you want to receive it early, talk to an accountant. You may be eligible to have less money taken out of your paychecks in 2008. Wouldn’t THAT be sweet? 

So, all in all, this NEW-First-Time-Homebuyer-Tax-Credit is a pretty awesome deal. Essentially making this the PERFECT time to buy a home. The market is TRULY a buyers market and you can only benefit from buying a home right now. 

Need to sell your home? Sell it yourself and save on commission. You can sell your home with our friends, Just List ‘Em

Now is the time to save money and earn the money you deserve. You’ve worked hard. Treat yourself.

-Jim Ingersoll

Jim Ingersoll

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